Radio's Evolving Influence in the Digital Age

In recent years, the landscape of audio and radio audiences has undergone a significant transformation. Technological advancements have introduced new access points for consumers, such as podcasts, digital radio, and streaming services available on various digital platforms. Global radio spend was set to reach $29.4bn in 2024 , an increase of 2.2% from 2023. However, global radio investment is still below pre-pandemic levels.???

Despite the surge in competition for listeners' attention, live radio continues to be the dominant audio format . Radio has preserved its relevance by integrating new technologies and evolving into a comprehensive provider of audio content, thereby adapting to the shifting preferences of its audience in both content and accessibility.?

From a marketing perspective, the fact that AM/FM (terrestrial radio) is the most listened-to platform in automobiles and has the highest reach of all in-car tuning platforms offers significant opportunities. It allows for broad audience reach and geographic targeting, making it cost-effective with a lower cost per impression. The habitual nature of radio listening fosters high engagement and loyalty, while host endorsements can enhance credibility. Radio ads can complement digital campaigns, provide real-time marketing opportunities, and target specific demographics effectively. The repetitive nature of radio ads also enhances brand recall, making it a powerful tool in a comprehensive marketing strategy.??

The rise of streaming services has dramatically altered the audio landscape. Incorporating music streaming platforms alongside traditional radio schedules can enhance reach by engaging a broader audience. This dynamic indicates that broadcast radio plays a complementary role within the digital audio sector.?

Radio can deliver an impactful reach, amongst other forms of advertising. In Canada, radio is highly listened to amongst Albertans, and least by Quebecois .? However, people in the North are significantly more likely to stream AM/FM radio compared to other regions in Canada. This gives them more options than traditional AM/FM receivers, though their overall radio listenership remains average.??

Many terrestrial radio listeners also engage with other forms of online audio content. Half of them use streaming services like Spotify or Apple Music, while the other half consume music on YouTube. Additionally, 30% are podcast listeners. Those who listen to both terrestrial AM/FM radio and streaming services are particularly avid audio consumers, with 74% using streaming services (compared to the average of 56%) and 48% listening to podcasts (compared to the average of 35%).?

Listeners who engage with both radio and podcast content more than the average person, and who are also highly responsive to ads, are referred to as "Super Listeners." A study found that Super Listeners recalled 33% more ads and had a 31% higher intent to buy compared to the average listener.?

Key Insights?

1. A major report, featuring 75 studies and proprietary data, reveals the true effectiveness of various advertising channels versus industry perceptions.?

The findings revealed that radio is the most undervalued channel. While evidence ranks radio a close second to TV, executives placed it only sixth. Targeting was identified as the most crucial media attribute for brand-building campaigns, and the data indicated that radio excels in targeting the right people at the right place and time. Despite this, executives rated radio as one of the least effective channels, placing it ninth. Conversely, radio is both perceived and proven to be second only to TV in terms of ROI and short-term sales response.?

A follow-up study, conducted in the wake of the pandemic and titled Re-Evaluating Media for Recovery , confirmed that radio remains the second most valuable medium after TV. It also found that perceptions of radio are aligning more closely with reality for certain attributes, such as targeting the right people at the right place and time and building brand salience. Consequently, radio’s overall perception ranking has improved from sixth to third.?

2. A US study was conducted in 2022 (Veritonic) on audience attention span when it comes to audio advertisements. ?

The findings they reported were based on tracking the impact of 49 audio advertisements for brands across various categories, including automotive, financial services, retail, and professional services. The study participants were:?

• Representative of the US population.?

• Asked to record their feelings during each of the audio spots they listened to.?

• Requested to identify the brands they favored and intended to buy both before and after hearing the ads.?

• Monitored for second-by-second engagement data throughout each commercial.?
• Contacted 48 hours after hearing the ads to check for recall.?

The major discovery they made was that thirty second ads have higher recall, compared to 15 second or 60 second ads when questioned about audio spots 48 hours post study exposure.? Listening to an ad in its entirety significantly enhances its memorability and positively influences sentiment towards the brand. When listeners stay tuned for the full duration of an ad, brand recall increases, and purchase intention rises by 10% compared to those who drop out early. On average, 61% of respondents listen to an audio ad all the way through. Therefore, keeping ads concise can help maintain listener engagement and improve overall effectiveness.?

3. Broadcast radio is highly effective at every stage of the purchase funnel. ?

It increases brand awareness by delivering wide reach and high frequency across all demographics. Nielsen data shows that incorporating broadcast radio into a campaign can boost reach by up to 41% without additional advertising spend , providing additive reach at local, regional, or national levels. Radio also creates favorability due to the close relationships listeners have with their preferred stations, leading to high engagement and brand familiarity. Additionally, it sparks conversion by delivering urgent calls-to-action at the most relevant times and places.?

Research by NC Solutions found broadcast radio to be the most effective medium for return on advertising, with a sample of 19 CPG brands showing it as the clear winner. Nielsen also found that adding audio to a TV campaign increases average ROI by 20% while reducing costs.??

The commercial effectiveness of radio can be attributed to three main reasons: trust, context, and an antidote to visual overload. Nielsen research shows that advertising claims on broadcast radio are considered more trustworthy than those on any other channel. Radio provides companionship and connection through hosts and DJs, seamlessly integrating advertising into the conversational flow. Moreover, 56% of Gen Z and millennials agree that audio offers a valued escape from excessive visual stimulation.?

As the industry continues to navigate post-pandemic recovery, the alignment between perception and reality regarding radio's capabilities is improving. This shift is crucial for maximizing the potential of radio in brand-building campaigns. By leveraging radio's strengths in targeting, reach, and engagement, advertisers can achieve significant gains in brand awareness, favorability, and conversion.?

Ultimately, radio's blend of trust, contextual relevance, and escape from visual overload positions it as a powerful antidote to the fragmented media landscape, ensuring its place as a cornerstone of effective advertising strategies.?